Amtech Systems' CEO Discusses F3Q12 Results - Earnings Call Transcript

Amtech Systems, Inc. (ASYS)

Q3 2012 Earnings Call

August 09, 2012, 05:00 pm ET

Executives

Brad Anderson - EVP, Finance, CFO, Treasurer & Secretary

J. S. Whang - Executive Chairman

Fokko Pentinga - President & CEO

Analysts

Colin Rusch - ThinkEquity

Jeff Osborne - Stifel Nicolaus

Jay Srivatsa - Chardan Capital Markets

Mark Miller - Noble Capital

Howard Halpern - Taglich Brothers

Presentation

Operator

Good afternoon and welcome to the Amtech Systems fiscal 2012 third quarter results conference call. All participants will be in listen-only mode (Operator Instructions). After today's presentation there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Brad Anderson, Chief Financial Officer. Please go ahead.

Brad Anderson

Thank you, Amy. Good afternoon and thank you for joining us for Amtech System’s third quarter fiscal 2012 results conference call. On the call today are J. S. Whang, Amtech’s Executive Chairman, Fokko Pentinga, our President and Chief Executive Officer and myself Brad Anderson, Chief Financial Officer.

After the close of trading today, Amtech released its financial results for the quarter ending June 30, 2012. The release is posted on the company’s website at amtechsystems.com.

During today’s call, management will make forward-looking statements. All such forward-looking statements are based on information available to us as of this date and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from current expectations.

Among the important factors which could cause actual results to differ materially from those in the forward-looking statements are changes in the technologies used by our customers and competitors, change in volatility and a demand for our products, the effect of changing worldwide political and economic conditions on government funded solar initiatives, capital expenditures, production levels, including those in Europe and Asia, the effect of overall market conditions, including the equity and credit markets and market acceptance risk. Other risk factors are detailed in the company’s Securities and Exchange Commission filings in including its Form 10-K and Form 10-Q.

J. S. Whang, our Executive Chairman will start our discussion today. Fokko Pentinga, our President and Chief Executive Officer will update you on current operations and discuss the progress in our technology and product development roadmap. I will then discuss third quarter financial results and our outlook for the September quarter.

So I'll now turn the call over to J. S. Whang, our Executive Chairman to begin the discussion.

J. S. Whang

Thank you, Brad. Good afternoon everyone and thank you for joining us. We appreciate your continued interest Amtech Systems. Let me first say that although this remains a very challenging environment, we continue to execute strategy of providing our customers with an increasing number of products and technologies to support the next-generation higher cell efficiencies. Our CEO, Fokko will update you on those products and technologies today.

With solar industry’s overcapacity, reduced service fees and demand in Europe most customers focus is on managing the balance sheet and operating cost issues. However, we believe once customers complete this necessary task the next available avenue for them to further reduce the cost of their product is through cost effective next-generation higher cell efficiency technologies and we are looking forward to beginning of that technology buying cycle.

It is very clear that solar is now becoming an integral part of our global energy mix and solar as a part of that mix is growing; year-over-year solar installation are increasing in many regions of the world. This will fuel future solar growth and the continued need for advancing the solar technologies. We are intensely focused on that longer term opportunity.

Let me now take you on comments we have shared previously regarding our efforts on external growth opportunities. While we were able to make significant progress on our goal of diversifying the revenue mix, at this time, our Board and management concluded it is more prudent to focus on internal innovations. Therefore, we agreed to temporarily postpone moving forward on this opportunity.

We continue to address all opportunities to mange cash during this stage of the downcycle. As a part of Amtech’s recent overall cost reduction program, our senior officers have taken voluntarily salary reductions and in addition to that we have reduced Board fees and other corporate salaries. The Board, senior officers and our entire organizations are united with a common focus on Amtech’s long-term goals.

Before I turn the discussion over to Fokko, we appreciate your continued interest in Amtech and assure you that we remain committed to our longer-term objectives. We are 100% focused on maintaining our market leadership position, delivering new products into the marketplace, preserving cash, diversifying our revenue mix over the longer-term and delivering value to all key stakeholders in the near and longer-term.

And now I will turn the call over to Fokko Pentinga, our President and CEO who will discuss current operations and our technologies under development. Fokko?

Fokko Pentinga

Thank you J. S. We continue to work very closely with our customers and during this quarter well in regards to obtaining customer acceptances. Given the current headwinds for all solar industry participants, this quarter’s level of acceptances on tools was clearly reflect not only developments of Amtech’s technology, but the diligence of our sales, service and technology support teams and the quality of our customers.

Despite the current headwinds, Amtech remains very well positioned to consistently deliver on its long legacy of providing high value of products and services to the market. We continue to collaborate with our customers in joint pursuit of advanced technologies essential to meeting the longer-term demands for the solar solutions. Such collaborations, collaborative partnerships are strengths of our business model and have driven our success overtime.

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